LVMH Increases Hermès Stake Yet Again

LVMH has increased its stake in Hermès, despite recently being ordered to pay an $8 million (£6.8 million) fine over its initial controversial acquisition. The conglomerate increased its number of shares from 22.6 per cent to 23.1 per cent as of June 30, a new financial report revealed.

"It was an opportunistic move," said LVMH chief financial officer Jean-Jacques Guiony. "It doesn't say anything about our attitude in the future, so you cannot extrapolate that for the rest of the year."

According to WWD, the company purchased the new shares on the market. LVMH and Hermès are currently embroiled in an ongoing legal dispute over the former's stake in the latter. LVMH was ordered to pay the considerable fine earlier this month by France's stock market regulator, AMF - the highest fine it has ever imposed. LVMH made it clear that it planned to appeal the decision, claiming that it was "completely unjustified".

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The conglomerate first announced that it had a stake in Hermès International in October 2010, but was accused of concealing its gradual acquisition through cash-settleed equity swaps dating back to 2001.

LVMH strongly denied investing via questionable means, arguing that the company did not slowly and secretively accrue shares. The luxury firm's lawyer, Georges Terrier, and vice president Pierre Godé called for the case to be annulled, saying that it was impossible for the committee to come to an unbiased decision based on Hermès' recent "damning media campaign" against the company.